Ideas
Small caps gain on economic optimism
The rotation out of big tech into small caps reflects broader economic optimism; small caps have underperformed for a long time and are gaining momentum as investors expect the economy to broaden and Fed easing to support more pockets.
China H200 approval boosts Nvidia
China is preparing to approve limited commercial imports of Nvidia H200 chips, potentially renewing access to a critical AI market; demand from Chinese customers is apparent, U.S. licensing is in final stages, and management has indicated 2026 could be strong with data-center sales possibly exceeding its half-trillion-dollar target.
Defense outperforms on geopolitical hawkishness
Overnight U.S. defense shares rallied on geopolitical hawkishness from the Trump administration and developments in Venezuela; if the U.S. military remains involved in the region for years, the sector can continue to outperform.
US innovation breaks rare-earth dominance
Navarro argues China's rare-earth leverage is temporary because American innovation and industrial breakthroughs will eliminate China's market dominance and boost domestic production.
Chevron has Venezuela headstart
Chevron already produces about 25% of Venezuela's oil and is the largest investor there, giving it a unique headstart if the U.S. pushes oil majors to rebuild Venezuela's energy sector; it has virtually no competition and benefits from the country's massive reserves.
Low-power edge AI chips grow
Low-power edge AI chips are the right technology for physical AI, robots, drones and smart factories because GPU-based approaches generate excessive heat and are unsustainable; DeepX's chips run at about 40W versus 100W+ GPUs and are being deployed with partners including Baidu, Dell, Samsung and Hyundai.
Bobcat benefits from strong construction demand
U.S. construction demand is strong and resilient while supply is constrained by a shortage of skilled labor; AI tools like Doosan Bobcat's jobsite companion can help close that gap, and Europe is turning around, supporting the company's hardware-to-software strategy.
Midterm risk weighs on Japan stocks
Although investors are generally bullish on Japanese stocks in 2026, the Japanese market has historically performed poorly in U.S. midterm election years because U.S. politics often turn tougher on major trading partners; Japan's large trade surplus and Trump administration dissatisfaction create a real risk of policy upset.
Asia is place for long-term managers
He remains constructive on Asia and sees it as the place to be for long-term managers, with opportunities across North Asia, South Asia, China and Japan.
Memory cycle risks are rising
They reduced AI exposure because memory demand is at a cyclical peak; high memory prices will eventually cure themselves, Chinese memory companies will soon go public and bring significant capacity online, and similar capacity is coming in semiconductor wafers, while consumer electronics buyers are starting to balk at prices.
Chinese hardware and industrials go global
The play in China is hardware and industrial companies, not software: Chinese semiconductor hardware, capital goods, renewables and battery companies are going global and increasing competition, and their mere entry can disrupt markets even without a large local presence.
China equities remain exciting
He remains very excited about China, with enough opportunities in the existing universe and IPOs, and sees valuation differentiation between offshore and onshore markets; Chinese companies are globally competitive beyond banks.
India defense benefits from escalation
They have grown defense holdings in India, which has perhaps the broadest and deepest defense sector in the world; the geopolitical escalation theme across China/Japan, India/Pakistan and China/India is continuing rather than reversing.
US economy supports long-term markets
Zelter remains confident in the U.S. economy and markets, citing a massive capex cycle, solid consumer, good economic growth and a politically savvy administration; while geopolitical tail risks require caution, the long-term trend is positive and Apollo is putting money to work.
Large industrials benefit from capex cycle
Apollo is leaning into larger companies that are part of a global industrial renaissance, citing a massive capex cycle and well-structured transactions with industrial leaders.
This Bloomberg Markets video, published January 09, 2026,
features Paul Dobson, Ian King, Avril Hong, Peter Navarro, Paul Allen, Lokwon Kim, Scott Park, Hideyuki, Vikas Pershad, Jim Zelter
discussing US Small Caps, NVDA, ITA, REMX, CVX, AI-SECTOR, Doosan Bobcat, EWJ, AAXJ, SMH, Chinese tech hardware, Chinese capital goods, KGRN, FXI, Indian defense sector, SPY, EXI.
15 trade ideas extracted by AI with direction and confidence scoring.
Speakers:
Paul Dobson,
Ian King,
Avril Hong,
Peter Navarro,
Paul Allen,
Lokwon Kim,
Scott Park,
Hideyuki,
Vikas Pershad,
Jim Zelter
· Tickers:
US Small Caps,
NVDA,
ITA,
REMX,
CVX,
AI-SECTOR,
Doosan Bobcat,
EWJ,
AAXJ,
SMH,
Chinese tech hardware,
Chinese capital goods,
KGRN,
FXI,
Indian defense sector,
SPY,
EXI
